CHF/JPY: Is the Horizontal Support Enough to Push the Price Upside?

• CHF/JPY seems to have found its support on a horizontal level on the H4 chart.
• The SMA 30 has been working as a support.
• The H1 chart looks bullish trading over today’s swing high.
• Intraday minor charts were bullish in Tokyo session.

CHF/JPY – Technical Analysis- H4 chart

The chart shows that the price after making a bearish correction has found its support around 165.650 and consolidated there for a while. It produced a doji candle followed by a bullish engulfing one. The next candle closed as a strong bullish candle. The buyers seem to be very interested to go long in the pair and push the price towards the North. The price may find its next resistance around 167.250.

If the price does not continue its bullish move, but makes a bearish breakout at the horizontal support, the sellers may wait for a bearish reversal pattern at the value areas to go short in the pair. The price may find its support around 164.000.

Price Action Analysis- H1 Chart

The H1 chart shows that despite bouncing multiple times at the level of 165.650, the price has found its resistance again at 166.330. As of writing, the chart has already produced a bearish engulfing candle right at the resistance. It may attract the intraday sellers to go short in the pair and drive it towards the level of 165.650. If that happens, traders are to wait for the chart either to make a breakout at the support to go short or to have a bullish reversal signal to go long in the pair.

Important thing to note is, if the pair makes a breach at the level of 166.330, the buyers may push the price towards the North. The price may find its next resistance around 167.385.

Written by: Md Tareq Sikder, Senior Analyst Forex Prop News

Contact and follow Tareq on Twitter: @tareqfpn